Reuters File Photo: A street sign in front of the New York Stock Exchange on Wall Street in New York, February 10, 200. Reuters / Eric Thayer / File photo
Written by Stephen Kulp
NEW YORK (Reuters) – Shares of Wall Street fell sharply on Tuesday as the US Treasury yields soared, deepening concerns over continued inflation and negotiating controversial debt limits in Washington.
The three major U.S. stock indexes have slipped nearly 2% or more, with interest rate sensitive technology and technology-related stocks weighing the most because investors have lost their appetite for risk.
It was the biggest one-day fall since May and the biggest Nasdaq fall since March.
The S&P 500 and the index were on their way to their biggest monthly decline since September 2020.
“The big picture is the sudden geopolitics of production last week, resulting in a‘ sell first, question later ’mentality,” said Ryan Detrick, market strategist at LPL Financial (Nasdaq 🙂 in Charlotte, North Carolina.
Detrick added, “(But) there are multiple reasons for the weight of sentiment today.” “Washington’s ceiling and spending bills and potentially high taxes have affected the overall investor sentiment behind Washington and led to quite a good-sized sale.”
The benchmark index was also paving the way for its weak quarterly performance since the Kovid epidemic brought the global economy to its knees.
Weaknesses within most asset classes, including gold, suggest a broad, widespread risk-off feeling.
U.S. Treasury yields have continued to rise, with yields reaching their highest level in 10 years since June, as inflation expectations have warmed and fears have grown that the US Federal Reserve may shorten the deadline to tighten its monetary policy.
Treasury Secretary Janet Yellen said she expected inflation to move closer to the end% by 2021 and warned lawmakers that they would fail to avoid a government shutdown because the nation could “severely damage” the economy as it moves closer to ending its power.
Senate Republicans were ready to block Democrats’ efforts to increase the government’s ability to borrow and avoid potential U.S. credit defaulters.
A conference board report found that consumer confidence in September weakened unexpectedly to its lowest level since February.
569.38 points or 1.63% decrease to 34,299.99; The S&P 500 lost 90.48 points, or 2.04%, to 4,352.63; And the Nasdaq Composite fell 423.29 points, or 2.83%, to 14,546.68.
Half of the components of the S&P 500 closed at 10% or more of their 52-week highs. This included 63 stocks that fell 20% or more.
Of the 11 major sectors of the S&P 500, all but energy have gone red, with technical and communications services suffering the most.
Communication services fell 2.8%, the largest one-day decline in the sector since January. The S&P growth index has closed at its lowest level since July and is the biggest one-day decline since February.
Microsoft Corporation (NASDAQ :), Apple Inc (NASDAQ :), Amazon.com Inc (NASDAQ 🙂 and Alphabet (NASDAQ 🙂 Inc. weighed the most on S&P and Nasdaq, ranging from 2.4% to 3.6%.
Ford Motor (NYSE 🙂 Co. was one of the few bright spots, 1.1% ahead of it said it would join Korean battery partner SK Innovation to invest 11 11.4 billion to build an electric F-150 assembly plant and three US battery plants.
The number of problem reductions has increased from 35.355 to -1 on the NYSE; At Nasdaq, the 4.52-to-1 ratio favors Dickliner.
The S&P 500 posted 17 new 52-week highs and five new levels; The Nasdaq Composite recorded 54 new heights and 120 new levels.
The volume on the US exchange was 12.27 billion shares, compared to an average of 10.37 billion in the last 20 trading days.